Lenovo 2016 Annual Report Download - page 136

134 Lenovo Group Limited 2015/16 Annual Report
CORPORATE SOCIAL RESPONSIBILITY REPORT
Lenovo made significant progress in FY 2015/16 with its conflict minerals program. The program’s scope
targets covering 95 percent of its procurement spend. It conducted a full country-of-origin inquiry utilizing
the EICC Conflict Minerals Reporting Template (CMRT) and received a 100 percent response rate. It
determined that 58 percent of its suppliers are legally subject to Dodd-Frank, and 94 percent have conflict
mineral policies and implement CMRTs with their supply chains.
Furthermore, 95 percent of its suppliers verify due diligence of their suppliers and this is typically done
with the EICC Conflict-Free Smelter Program (CFSP). Through these efforts, it improved its conflict-free
status from 50 to 63 percent considering all reported potential smelters. Excluding alleged smelters not
validated as true smelters, it improved its conflict-free status from 68 to 75 percent. And, importantly, it
achieved 100 percent conflict-free status on tantalum. General information on conflict minerals can be
found at the EICC Conflict Free Smelter Initiative (CFSI).
Supplier Diversity
Lenovo sees mutual value in promoting diversity in its business relationships. It is a natural part of
its business strategy to create a diverse and competitive supplier base and to strengthen economic
development in historically underutilized communities. Through its Supplier Diversity Program, Lenovo is
committed to maximizing the inclusion of diverse suppliers through identifying opportunities, developing
and incubating relationships, creating processes that encourage diverse supplier integration, and building
on its already strong culture of inclusion – The Lenovo Way.
Lenovo identifies diverse suppliers as those that are at least 51 percent owned and controlled by women,
minorities, veterans, service-disabled veterans, and persons with a disability. Lenovo also includes
suppliers that are defined by the U.S. Federal Government as a Small Disadvantaged Business, HUB Zone
business, or small business.
Lenovo partners with a variety of national and regional organizations, such as National Minority Supplier
Development Council (NMSDC), and Women’s Business Enterprise National Council (WBENC) to facilitate
supplier identification and program development. Lenovo is also active in local and regional events aimed
at promoting, creating opportunities for, and celebrating diverse suppliers. Lenovo currently conducts
more than US$120 million in business annually with small and/or certified diverse suppliers in the United
States.
For more information, please visit its Supplier Diversity website at www.lenovo.com/supplierdiversity.
As an extension of its Occupational Health and Safety (OHS) process, it continues to monitor the
performance of its key worldwide contract manufacturing locations to ensure a high level of regulatory
compliance and standard of care. Rigorous compliance reviews are conducted on an annual basis to
validate compliance and overall OHS related performance. Identified action items are tracked to closure
with a focus on high risk and systemic findings or exposures.
In addition, key contract manufacturing locations are required to have Lenovo-specific Business Continuity
Plans and robust Pandemic Response Plans to further mitigate risk and support employee well-being.
Validation checks are also completed on a periodic basis.
Lenovo plans to continue optimizing its logistics programs and working closely with its partners to ship
products in the most environmentally responsible manner.